The Internet is potentially changing pricing practices from _ to _. fixed; dynamic

_____ is the sum of values that consumers exchange for the benefits of having or using a product or service. Place Purchase Price Premium Kotler / Armstrong 11e, Chapter 10

The Internet is potentially changing pricing practices from _____ to _____. fixed; dynamic dynamic; fixed value; premium external; internal Kotler / Armstrong 11e, Chapter 10

eBay.com is an example of a company that uses _____ pricing. fixed dynamic prestige value Kotler / Armstrong 11e, Chapter 10

Which of the elements in the marketing mix produce revenue? promotion product price all of the above Kotler / Armstrong 11e, Chapter 10

One problem with pricing is that managers are often too quick to reduce their price, rather than to convince their buyers that their product is worth the higher cost. True False Kotler / Armstrong 11e, Chapter 10

Which of the following is not an internal factor affecting pricing? marketing objectives marketing mix strategy costs competition Kotler / Armstrong 11e, Chapter 10

A product that is high in quality and available in a limited number of outlets will probably have a _____. high price low price discounted price none of the above Kotler / Armstrong 11e, Chapter 10

Target costing involves designing a new product, determining its cost, and then asking, “Can we sell it for that?” True False Kotler / Armstrong 11e, Chapter 10

Target costing involves designing a new product, determining its cost, and then asking, “Can we sell it for that?” True False (Target costing starts with setting an ideal price based on customer considerations then targets the costs to see that the price is met.) Kotler / Armstrong 11e, Chapter 10

_____ costs do not vary with production or sales level. Materials Fixed Total Value Kotler / Armstrong 11e, Chapter 10

The _____ shows the drop in average costs with accumulated production experience. learning curve demand curve cost curve all of the above Kotler / Armstrong 11e, Chapter 10

Which type of market consists of many buyers and sellers who trade over a range of prices rather than a single market price? pure competition monopolistic competition oligopolistic competition pure monopoly Kotler / Armstrong 11e, Chapter 10

Which type of market has few sellers who are very sensitive to each other’s prices? pure competition monopolistic competition oligopolistic competition pure monopoly Kotler / Armstrong 11e, Chapter 10

A(n) _____ curve shows the number of units the market will buy in a given time period at different prices that might be charged. demand elastic experience reverse Kotler / Armstrong 11e, Chapter 10

If demand changes greatly with a small change in price, we say the demand is _____. inelastic elastic sensitive reversed Kotler / Armstrong 11e, Chapter 10

Which of the following is(are) not an external consideration when setting prices? costs the government social concerns resellers Kotler / Armstrong 11e, Chapter 10

The simplest pricing method is _____. break-even pricing cost-plus pricing value-based pricing competition-based pricing Kotler / Armstrong 11e, Chapter 10

If a reseller buys a product from a manufacturer for $20 and wants to mark it up 50%, what will the new price be? $30 $40 $25 none of the above Kotler / Armstrong 11e, Chapter 10

If a reseller buys a product from a manufacturer for $20 and wants to mark it up 50%, what will the new price be? $30 $40 (Markup price = unit price/(1-desired return on sales) $25 none of the above Kotler / Armstrong 11e, Chapter 10

What is the break-even volume for a company with fixed costs of $50k, variable costs of $20 and a price of $30/unit? 500 1000 5000 2500 Kotler / Armstrong 11e, Chapter 10

What is the break-even volume for a company with fixed costs of $50k, variable costs of $20 and a price of $30/unit? 500 1000 5000 (BE volume = FC/(Price–VC) 2500 Kotler / Armstrong 11e, Chapter 10

Value-based pricing uses the buyer’s perception of value to set prices. True False Kotler / Armstrong 11e, Chapter 10

According to the text, competition-based pricing is popular in _______ markets. pure competition pure monopoly monopolistic competition oligopolistic competition Kotler / Armstrong 11e, Chapter 10

The Internet is potentially changing pricing practices from _ to _. fixed; dynamic